Money Market Account with a Blended 4.07% Rate Guaranteed to 9/30/08 at a TN Bank (First National)


First National Bank is advertsing a promotion on its Prestige Gold Money Market Account. A blended yield of 4.07% APY for balances between $50,000 and $100,000 is guaranteed until 9/30/2008. A yield of 3.30% APY applies to all balances below and above this amount. The blended yield means that you receive 3.30% APY on the first $50,000, and 4.07% APY on balances from $50,000 to $100,000. The minimum deposit is $10,000. There's a $15/month service charge if the account balance falls below $10,000. This special doesn't seem to be listed at the bank's website. It was advertised in today's Knoxville News Sentinel. The ad is available online here.

It appears to require a branch visit to open the account. The ad lists two of the bank's branches (Dixie Lee Junction, 865-988-2230 and 10514 Kingston Pike, 865-988-2210). Other branches are located in the Tennessee cities of Lenoir City, Loudon, Maryville and Cleveland. If you live near one of these other branches, I would recommend calling to see if they'll honor this ad. The bank has been FDIC insured since 1934 (FDIC Certificate # 4947).

[Update: Added correction/clarification on the blended rate feature.]
Anonymous   |     |   Comment #1
I called them 10:28 AM today - this is not really a 4.07% rate according to the CSR. It is a “blended” rate. Say you put in $90K. You earn 3.3% on the first $50K of that, and 4.07% only on the last $40K. In my view this makes this both confusing and noncompetitive. Also, the CSR was almost certain it required a branch visit.
Banking Guy
Banking Guy (anonymous)   |     |   Comment #2
Thanks for the info. The bank's ad is misleading in my opinion since the small print doesn't describe this blending. I've updated the post with this info.